System and method for efficiently processing payments via check and electronic funds transfer

• US 5,832,464 A
• Filed: 08/21/1996
• Issued: 11/03/1998
• Est. Priority Date: 05/08/1995
• Status: Expired due to Term

• Current Assignee: Image Data Corporation, LexisNexis Risk Solutions, Inc. (RELX PLC)
• Original Assignee: Image Data Corporation
• Inventors: Houvener, Robert C., Hoenisch, Ian P.
• Primary Examiner(s): Cosimano, Edward R.
• Application Number:
  US08/700,815
• Time in Patent Office: 804 Days
• Field of Search: 235/375, 235/379, 235/380, 364/400, 705/1, 705/40, 705/44, 705/45, 902/3, 902/5
• US Class Current: 705/45
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/347 Passive cards
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/40145 Biometric identity checks
• CPC Class Codes: G07C 9/253 visually
• CPC Class Codes: G07C 9/257 electronically G07C9/26 takes precedence
• CPC Class Codes: G07C 9/27 with central registration
• CPC Class Codes: G07F 19/201 Accessories of ATMs
• CPC Class Codes: G07F 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07F 7/1075 PIN is checked remotely

Abstract

The present invention relates to the field of identity verification. Specifically, the invention is directed to a device and method for facilitating signature-less financial transactions as an improvement over common, prior art check-based financial transactions. This system and method provides the ability to use a check as a form of payment at a point of use without having to use the signed check as the binding document that is processed through the financial system to obtain payment by the entity rendering the service. The system and method comprises reading a hardcopy check via an electronic scanner, correlating the account number to a biometric or other piece of data that would positively identify the person tendering the check and using the biometric or other data to confirm the identity of the person tendering the check. This data is then associated with an auditable record of the person who performed the biometric or other data comparison. Once a particular financial transaction is authorized, the check is returned to the tenderer and the financial transaction is processed as an electronic fund transfer (EFT).

Claims

1. A system for correlating, storing and retrieving identifying information and financial information to facilitate the processing check-initiated financial transactions via electronic funds transfer comprising:

at least one remote correlation database site having stored therein a database comprising a plurality of identifying information units, wherein at least one of said identifying information units corresponds to an authorized user of a checking account;

a point of identification terminal having a means for scanning data off of a check and a means for displaying at least one of said identifying information units;

a means of communicating between said point of identification terminal and said remote correlation database to interchange data between the two;

a means for correlating at least one identifying information unit to a checking account number;

a means for accepting identifier specific data at the point of identification terminal to verify that an identifier at the point of identification terminal has compared the identifying information unit displayed on the display means with physical information presented by the person to be identified and that a match exists between the two;

a storage means for storing said correlated identifying information unit, identifier specific data and checking account number as a checking transaction record; and

a means for retrieving said transaction record.

2. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 1, wherein said identifying information unit comprises the name of an authorized user of said checking account.

3. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 1, wherein said identifying information unit comprises the address of an authorized user of said checking account.

4. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 1, wherein said identifying information unit comprises the name and address of an authorized user of said checking account.

5. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 1, wherein said identifying information unit further comprises a digital image of an authorized user of said checking account.

6. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 1 further comprising a means for verifying that said point of identification terminal is authorized to access said remote correlation database.

7. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 1 further comprising an optical character recognition means for resolving printed information appearing on the face of said check.

8. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 7, wherein said optical character recognition means is built into said point of identification terminal.

9. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 7, wherein said optical character recognition means is located at said remote database site.

10. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 1, wherein said means of communication comprises a point of verification modem communicating with a modem located at one of said remote database sites over a data flow path.

11. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 10, wherein said data flow path comprises public access telephone lines.

12. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 10, wherein said data flow path comprises a dedicated wide area network.

13. The system for efficiently processing check-initiated financial transactions via electronic funds transfer as claimed in claim 10, wherein said data flow path comprises a satellite communications link.

14. A method of correlating, storing and retrieving identifying information and financial information to facilitate the processing of check-initiated financial transactions via electronic funds transfer, said method comprising the steps of:

accepting a check from a tenderer as the form of payment for a financial transaction, said check having a checking account number included thereon, which checking account number represents the checking account from which funds required to complete said check-initiated financial transaction will be drawn;

inputting said checking account number into a point of identification terminal;

establishing communications between said terminal and a remote correlation database site, said database site having stored therein a database comprising a plurality of identifying information units, at least one of said identifying information units corresponding to at least one authorized user of said checking account;

verifying that said terminal is authorized to access said remote correlation database site;

transmitting said checking account number from said terminal to said remote database site over a communications means;

retrieving at least one of said identifying information units corresponding to said checking account number transmitted to said remote correlation database site;

transmitting said identifying information unit over said communications means to said point of identification terminal;

displaying said identifying information unit received from said database site on a display means located at said point of identification terminal;

comparing said displayed identifying information unit with characteristics of said person tendering said check;

inputting identifier specific data into said point of identification terminal to indicate that the identifier has compared the displayed identifying information with the characteristics of the person tendering said check;

transmitting said identifier specific data to said remote correlation database site; and

storing said identifying information, said identifier specific data and transaction data as a transaction record for recall should a transaction be questioned at a later date.

15. The method of efficiently processing check-initiated financial transactions via electronic funds transfer of claim 14, wherein said identifying information unit comprises the name and address of at least one authorized user of said checking account.

16. The method of efficiently processing check-initiated financial transactions via electronic funds transfer of claim 15, wherein said identifying information unit further comprises a digital photographic image of at least one authorized user of said checking account.

17. A method of correlating, storing and retrieving identifying information and financial information to facilitate the processing of a check-initiated financial transaction via electronic funds transfer, said method comprising the steps of:

accepting a check at a transaction site as payment for a financial transaction, said check containing a unique checking account number and at least one identifying information unit capable of identifying the tenderer of said check;

communicating said checking account number to a remote correlation database;

mapping said checking account number at said database to at least one identifying information unit corresponding to at least one authorized user of said checking account;

transmitting said at least one identifying information unit mapped by said remote database to said transaction site;

comparing said at least one identifying information unit received from said remote database with said identifying information unit included on said check;

indicating that the tenderer of said check is an authorized user of said checking account by selecting the identifying information unit received from the remote database that matches the identifying information unit included on said check;

logging said matched identifying information unit at said remote database site for recovery should said financial transaction fail; and

returning said check to said tenderer.

18. The method of efficiently processing a check-initiated financial transaction via electronic funds transfer of claim 17, wherein said identifying information unit included on said check, which is matched with said identifying information unit received from said remote database comprises a name and address of each authorized user of said checking account.

19. The method of efficiently processing a check-initiated financial transaction via electronic funds transfer of claim 17, further comprising requesting a transaction record should a check-initiated electronic funds transfer transaction fail, receiving said transaction record and continuing the processing of the financial transaction by contacting said check tenderer and requesting an alternative form of payment.